- Easily accessible credit- No interest line of credit- Gimmmick Cards- Give always for taking debtNavarro (2005) MARS modelisWhats in it for us?Community&Corporate responsibilityWhat about our customers?DelightCustomersStudents often live for the now and get lost in a world of 'interest free overdrafts' and 'no fee credit cards' and often do not understand the future repercussions of not managing their debt correctly or saving for a rainy day.Fin-Ed 101How Can We Help-Simple foundation- Understand market reactionPlaying our part to create Financially Literate KiwisFinancial Literacy is the combination of Strong Financial Knowledge developed through Financial EducationMotivation to increase your financial well beingFundamental skills to help you achieve better financial healthRoot Of the ProblemGrows our brandBe the bank that caresResponsiblityStrategy alignmentGrow Wealth-Tailored Products-Wealthier customers-Promote Investments (property or finincal)-Grow customer baseFinancial LiteracyFinancial EducationSkillsHow does it all fit together?Financial KnowledgeMotivationCurrent Financial Literacy Focuses:

Students don't understand the long term financial implications of their debt.

This can lead to struggles with financial independence, financial security, delays in purchasing a first home etc.Why is there nothing in this space?

Often thought of as a market that doesn't provide much value.

But!

They are future investors.

Eg, reducing debt while studing can equate to a mortgage earlier in life and someone becoming a high value customer.Why should we invest in them?

Legend story from Chch.

Customers enjoy the truth and value honesty above a good sales pitch.- Developing a understanding of financial products and concepts- Becoming more aware of financial risks and opportunities.- Learning key skills to improve financial well-being.The ability to make informed decisions to better your financial position in the futureThis is the end state that will allow Kiwis to achieve their financial goalsHowever, it has been recognised that evaluation of financial education is inherently difficult. There are still a number of programmes being developed and delivered without built-in evaluation. The need to have a clear consensus on a ‘robust’ evaluation model that allows impact to be measured and independent reporting of results has been widely recognised both in New Zealand and around the world.The framework covers the following capabilities:

Overdraft Borrowing Loans Planning Budgeting StudyWhat should we do about itWhat's out there already?In terms of financial education for this age group: Very Little

More specifically in regards to: - The long term implications of debt- Best practices for long term financial thinking- Easy accessible education or advice- Invest in comprehensive offering- Tailored content for studentsSimple foundation- Help understand options- Provide foundation level information- Tailored content for students-- Review feedback from age groupAnalyse Market Reaction- Review customer buy in- Create next level offeringManagingStudent ProblemsThanksQuestions?How can we achieve this?- Our current Generation of Students-There is a large flow on effect, students leave university with significant amounts of low / no interest debt and are then faced with the reality of interest. We then spend years gradually paying it off this is a big set back in relation to saving for your first home or other investmentsPeter Clare and Simon Power have expressed the importance of financial literacy in New Zealand in recent media pieces. It also backs our Core Values:Acting LocallyExperience that delightsA Seamless One bank approachWe are Working to better New Zealands Financial LiteracyThrough work with the Fin-Ed Centre and Managing you money workshopsThe result of Financial Education, It is the ability to understand a series of facts about the use and management of moneyWe Held a Survey to get thoughts from students past and presentand noted some common themes"$2k interest free overdraft? too easy""Never had to pay overdraft interest though, just take advantage of the zero interest student deals."32% were regularly in overdraft or living within their overdraft57% said they learnt their money management skills from their parents"Easily accessible advice of any kind on how to manage my money. Preferably it would take my current money managing habits into account and adjust any advice it gives me accordingly""I'd like to learn more about mortgages and buying property""strong advice not to borrow lots of money even if it IS interest free..."